Roku (NASDAQ:ROKU) Trading Down 8.3% – Here’s What Happened

Roku, Inc. (NASDAQ:ROKU) dropped 8.3% during mid-day trading on Monday . The stock traded as low as $68.99 and last traded at $70.27. Approximately 1,488,528 shares changed hands during mid-day trading, a decline of 60% from the average daily volume of 3,705,013 shares. The stock had previously closed at $76.67.

Wall Street Analyst Weigh In

A number of analysts have commented on ROKU shares. Robert W. Baird raised shares of Roku from a “neutral” rating to an “outperform” rating and lifted their target price for the stock from $70.00 to $90.00 in a report on Monday, November 18th. Citigroup increased their price target on shares of Roku from $70.00 to $103.00 and gave the company a “neutral” rating in a research report on Thursday, February 20th. Baird R W upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a report on Monday, November 18th. Jefferies Financial Group upgraded shares of Roku from an “underperform” rating to a “hold” rating and increased their target price for the stock from $55.00 to $100.00 in a report on Thursday, February 20th. Finally, Wedbush reissued an “outperform” rating and issued a $100.00 price target on shares of Roku in a report on Monday, February 10th. One analyst has rated the stock with a sell rating, seven have given a hold rating, fourteen have given a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat, Roku has a consensus rating of “Moderate Buy” and an average price target of $96.71.

Roku Price Performance

The business has a 50-day moving average of $82.12 and a 200-day moving average of $77.12. The firm has a market cap of $10.16 billion, a price-to-earnings ratio of -78.25 and a beta of 2.12.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share for the quarter, beating the consensus estimate of ($0.44) by $0.20. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The business had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.15 billion. As a group, equities analysts anticipate that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling

In other Roku news, CFO Dan Jedda sold 5,000 shares of the firm’s stock in a transaction that occurred on Friday, February 14th. The shares were sold at an average price of $100.40, for a total transaction of $502,000.00. Following the completion of the sale, the chief financial officer now directly owns 58,555 shares in the company, valued at $5,878,922. This trade represents a 7.87 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Charles Collier sold 7,181 shares of the company’s stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $78.25, for a total value of $561,913.25. Following the completion of the transaction, the insider now directly owns 7,380 shares in the company, valued at $577,485. The trade was a 49.32 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 93,308 shares of company stock worth $8,296,166. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Institutional investors have recently added to or reduced their stakes in the company. FMR LLC boosted its position in shares of Roku by 31.7% in the fourth quarter. FMR LLC now owns 19,183,942 shares of the company’s stock valued at $1,426,134,000 after acquiring an additional 4,613,570 shares during the period. Marshall Wace LLP boosted its holdings in Roku by 663.9% in the 4th quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock valued at $173,644,000 after purchasing an additional 2,030,036 shares during the period. Holocene Advisors LP bought a new position in shares of Roku during the third quarter worth approximately $129,015,000. Cadian Capital Management LP acquired a new stake in shares of Roku in the fourth quarter valued at approximately $87,632,000. Finally, Jacobs Levy Equity Management Inc. boosted its stake in shares of Roku by 505.3% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company’s stock valued at $96,402,000 after buying an additional 1,082,548 shares during the period. 86.30% of the stock is currently owned by institutional investors.

Roku Company Profile

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.